JAFCO : Financial Results for the Three Months Ended June 30, 2021

JAFCO Group Co., Ltd.

The original disclosure in Japanese was released on July 21, 2021 at 12:00 (GMT+9).

This is a summary translation of a press release made in Japanese for convenience only.

JAFCO Group Co., Ltd. (Ticker: 8595)	Contact: Investor Relations
1-23-1 Toranomon, Minato-ku,	Tel: [phone]
Tokyo 105-6324 Japan	[e-mail]
http://www.jafco.co.jp/english/
	July 21, 2021

Financial Results for the Three Months Ended June 30, 2021

[Japanese GAAP]

(Summary of Japanese announcement)

(Japanese yen figures less than one million yen are rounded down)

1. Consolidated Performance for the Three Months Ended June 30, 2021 (April 1, 2021 - June 30, 2021)

1. Consolidated Operating Results

(figures with % indicate the rate of change from the same period of the previous fiscal year)

Net sales

Operating income

Ordinary income

Profit attributable to

[¥ million]

[%]

[¥ million]

[%]

[¥ million]

[%]

JAFCO Group Co.,

Ltd. stockholders

[¥ million]

[%]

For

the

three

months

14,860

235.3

12,348

-

13,013

735.3

10,076

-

ended June 30, 2021

For

the

three

months

4,431

97.0

658

131.4

1,557

(8.2)

613

(59.2)

ended June 30, 2020

Note:

Comprehensive income

Three months ended June 30, 2021:

¥14,796 million [(16.3%)]

Three months ended June 30, 2020:

¥17,671 million [907.2%]

Fully diluted net

Profit per share [¥]

income per share

[¥]

For the three months

362.34

-

ended June 30, 2021

For the three months

19.83

-

ended June 30, 2020

(2) Consolidated Financial Position

		Total assets		Net assets		Equity ratio	Net assets
		[¥ million]		[¥ million]		[%]	per share [¥]
As of June 30, 2021		236,861		201,126		84.9	7,687.27
As of March 31, 2021		262,383		215,237		82.0	7,316.12
(Reference) Shareholders' equity	As of June 30, 2021:	¥201,126 million
		As of March 31, 2021:	¥215,237 million

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JAFCO Group Co., Ltd.

2. Dividends

		Dividend per share [¥]
(Record date)	End of 1Q	End of 2Q	End of 3Q	End of	Total
the year
For the year ended	-	-	-	138.00	138.00
March 31, 2021
For the year ending	-
March 31, 2022
For the year ending		-	-	-	-
March 31, 2022 (Forecast)

Notes: The forecast of dividend amount is unfixed.

3. Business Forecasts for the Year ending March 31, 2022 (April 1, 2021 - March 31, 2022)

Volatility in stock markets and the IPO environment in Japan and overseas causes performance to fluctuate, as a result of which it is difficult to make meaningful forecasts in earnings. Therefore, instead of announcing projections, the Company makes timely disclosure of quarterly financial results.

*Other Information

1. Changes in significant subsidiaries during this period: None
2. Adoption of specific accounting methods for the preparation of quarterly consolidated financial statements: None
3. Changes in accounting principles, accounting estimates and correction of prior period errors

1. • Changes in accounting principles due to revisions to accounting standards: Yes
     ② Changes in accounting principles other than ① : None
     ③ Changes in accounting estimates: None
     ④ Correction of prior period errors: None
2. Number of issued shares (common stock)
3. • Number of issued shares (including treasury shares)

As of June 30, 2021: 26,970,000

As of March 31, 2021: 32,550,000

• Number of treasury shares

As of June 30, 2021: 806,451

As of March 31, 2021: 3,130,406

• Average number of shares

Three months ended June 30, 2021:	27,809,653
Three months ended June 30, 2020:	30,930,432

*Quarterly financial results are not subject to audit procedures.

*Cautionary statements with respect to forward-looking statements and other notes

(Access to the financial supplement materials)

The presentation material for the three months ended June 30, 2021 will be released on the Company's website on July 21, 2021.

*Note to XBRL

Please note that the names of the English accounts contained in XBRL data, which are available through EDINET and TDNet, may be different from those of the English accounts in our financial statements.

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JAFCO Group Co., Ltd.

1. Outline of Operating Results

(1) Outline of Operating Results

In the consolidated fiscal three months ended June 30, 2021, the Company and its consolidated subsidiaries (collectively the "Company Group") posted net sales of ¥14,860 million, (up 235.3% year-on-year from ¥4,431 million), operating income of ¥12,348 million (¥658 million a year earlier), ordinary income of ¥13,013 million (up 735.3% year-on-year from ¥1,557 million), and profit attributable to JAFCO Group Co., Ltd. stockholders of ¥10,076 million (¥613 million a year earlier). (The year-on-year rate of change of 1,000% or more is omitted.)

There were four IPOs by the Company Group's portfolio companies (two in Japan and two overseas) during the consolidated fiscal three months ended June 30, 2021. Capital gains and success fees surged year-on-year as a result of the sale of shares in a major IPO.

With regard to the impact of the new coronavirus infection and the Company's response, please refer to the presentation material for the period under review which will be released on the Company's website.

Because the Company's earnings may fluctuate sharply for each three-month period due to the nature of its business, we provide annualized comparison as well as year-on-year comparison for the period under review.

(Outline of Capital Gains)

There were four IPOs by the Company Group's portfolio companies (two in Japan and two overseas) during the consolidated fiscal three months ended June 30, 2021. Capital gains surged year-on-year as a result of the sale of shares in a major IPO.

					(Millions of Yen)
		For the year ended	For the three	For the three	Annualized
		months ended
		March 31, 2021	months ended	comparison
		June 30, 2021
		(A)	June 30, 2020	[(B)×4]/(A) (%)
		(B)
Revenues from operational	16,164	3,176	10,823	267.8
	investment securities (1)
	Proceeds from sale of securities	16,074	3,140	10,786	268.4
	Dividend and interest income	90	35	37	163.6
Cost of operational investment securities	4,903	791	1,391	113.5
(2)
	Cost of securities sold	4,903	791	1,391	113.5
	Impairment	-	-	-	-
Capital gains (1) - (2)	11,260	2,385	9,431	335.0
Multiple (1) / (2)	3.30	4.01	7.78	-
Capital gains on listed shares	7,567	2,443	9,463	500.2
Capital gains on unlisted shares	3,693	(58)	(31)	-
	Gains on sale	4,435	217	357	32.2
	Losses on sale	742	276	389	209.8

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JAFCO Group Co., Ltd.

(Outline of Investment Loss Reserves)

In the consolidated fiscal three months ended June 30, 2021, additions to investment loss reserves fell as the impact of COVID-19 was limited. The ratio of reserves to the balance of unlisted operational investment securities also decreased.

									(Millions of Yen)
		For the year ended	For the three		For the three months	Annualized
		March 31, 2021	months ended		ended June 30, 2021	comparison
		(A)	June 30, 2020			(B)	[(B)×4]/(A) (%)
Additions to investment loss	3,483		2,213			302	34.7
reserves (1)
	Company-by-company	3,541		2,247			311	35.1
	reserves
	(Reversal of general	(58)		(34)			(9)	-
	reserves)
Reversal of investment loss	803		157			515	256.6
reserves (2)
Net additions = (1)-(2)	2,679		2,056			(213)	-
(minus figures are reversals)
									(Millions of Yen)
				As of March 31, 2021		As of June 30, 2021
Balance of investment loss reserves			10,917			10,703
	Company-by-company reserves			10,772			10,567
	General reserves				145			136
Ratio to all unlisted operational investment			17.3%			16.3%
securities

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JAFCO Group Co., Ltd.

(Outline of Balance of Operational Investment Securities)

The balance of operational investment securities rose because of steady investment activity, mainly in startup companies, and IPOs, etc. of portfolio companies.

			(Millions of Yen)
		As of March 31, 2021	As of June 30, 2021
Difference between acquisition cost and market value of	14,850	15,159
listed operational investment securities
	Securities whose market value	14,850	15,159
	exceeds acquisition cost
	Securities whose market value	-	-
	falls below acquisition cost

	For the year	For the three months
	ended March 31, 2021	ended June 30, 2020
(Reversal of) Unrealized losses on	(150)	(83)
operational investment securities

(Millions of Yen)

For the three months ended June 30, 2021

-

Balance of Operational Investment Securities

				(Millions of Yen)
	As of March 31, 2021	As of June 30, 2021
		Figures on the		Figures on the
	Acquisition cost	Acquisition cost	quarterly
	consolidated B/S
			consolidated B/S
Listed	1,594	16,444	1,640	16,799
Unlisted	62,511	63,102	64,471	65,703
Total	64,105	79,547	66,111	82,503

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